Royal Vopak - Capital Markets Day 2013 - Eelco Hoekstra

Vopak’s terminal network portfolio: Continuous alignment with energy dynamics

Capital Markets Day, 10 December 2013

Eelco Hoekstra, Chairman of the Executive Board and CEO

Forward-looking statements

This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By

their nature, forward-looking statements involve risks and uncertainties because they relate to events and

depend on circumstances that may or may not occur in the future, and Vopak cannot guarantee the accuracy

and completeness of forward-looking statements.

These risks and uncertainties include, but are not limited to, factors affecting the realization of ambitions and

financial expectations, developments regarding the potential capital raising, exceptional income and expense

items, operational developments and trading conditions, economic, political and foreign exchange

developments and changes to IFRS reporting rules.

Vopak’s EBITDA ambition does not represent a forecast or any expectation of future results or financial

performance.

Statements of a forward-looking nature issued by the company must always be assessed in the context of the

events, risks and uncertainties of the markets and environments in which Vopak operates. These factors could

lead to actual results being materially different from those expected, and Vopak does not undertake to publicly

update or revise any of these forward-looking statements.

2 Capital Markets Day 10 December 2013

Growing trade imbalance over the last 25 years Main drivers for growth

280%

GDP

60%

Energy

demand

40%

Population

400%

Chemical

trade

375%

LNG trade

100%

Oil trade

Source: UN (2013); World bank (2013); BP (2013); IHS Chemicals.


Growing energy

demand

Globalization and

increasing trade

Liberalization of

former closed

economies

Increased storage demand over the last decades Main global drivers for Vopak’s growth strategy in the past

New products to

store due to

renewables

Increasing focus on sustainability and safety

Catch-up

infrastructure

new markets


Vopak’s milestones over the last decades But the world around Vopak has changed as well

1988-1993 1994-1998 1999-2003 2004-2008 2009-2013

1999

Merger Van Ommeren and Pakhoed

resulting in Royal Vopak

Vopak continues

as a tank storage

company

1988 Van Ommeren and Pakhoed

operate around 19 million cbm

storage capacity together

Vopak operates more

than 30 million cbm

storage capacity

1996 Full control of Univar

2002 Vopak exceeds

market capitalization

of EUR 5 billion

2012

2011

Vopak’s first

LNG terminal

2013


Mega trends that drive storage demand Different growth scenarios projected for 2035 by different institutions

70-170%

GDP

15-55%

Energy

demand

15-35%

Population

Source: UN (2013); World bank (2013); IMF (2013); IEA (2012); Shell (2013) and various other sources.


Key global features as driver for change On which Vopak should anticipate in the next decades

A further Eastern shift

in the international

system?

Further globalization

or away from ‘the

world is flat’?

Different economic

growth paths

Different energy

demand growth and

trade paths

The role of

renewables in the

energy mix?


LNG as

transport fuel Shale gas in

China

European refining

& petrochemical

Questions arising on the business Vopak has analyzed and quantified the boundaries

Biofuel

scenarios

Energy role of

Africa

US oil and gas

export scenarios


Outcome of quantified scenarios (1) Vopak has analyzed and quantified the boundaries

In 2015, new emission regulations in

North America and Northwest Europe

will come into force that is expected

to change the bunker fuel mix

Depending on regulation and gas

prices, LNG is a competitive

compliant bunker fuel, however, at a

very early stage of adoption

China has the largest shale gas

deposits in the world and energy

demand is growing at a fast pace

There are several factors that impact

the speed of shale gas development

Today, the Chinese government

forbids the use of natural gas to

produce chemicals

LNG as

transport

fuel

Shale gas

in China

Additional infrastructure is

required, however, timing

is uncertain

In the long term, there are

opportunities to establish

a network of small scale

LNG facilities

Today, Vopak takes

advantages from Chinese

chemical imports with no

impact from Chinese shale

gas

Vopak needs to monitor its

potential implications in the

long term


Outcome of quantified scenarios (2) Vopak has analyzed and quantified the boundaries

Local demand is considered to be

relatively stable (60%)

Import and export is considered to be

more volatile (40%)

Subsidies or tax exemptions are expected

not be leading for the future

The scale of the African economy is

expected to take off after 2030

Oil is dominant in energy mix (~30%),

with limited energy infrastructure

Growth is not divided equally over the

continent: ‘pockets of growth’

Biofuel

scenarios

Energy

role of

Africa

In Europe, depending on GDP and other

developments, few closures are still

expected; Mediterranean area may face

the next wave of closures

However, today, the majority of refineries

in Europe are required on a global level

European

refining

Further potential

changes in the refinery

landscape are expected

to change oil flows, and

accordingly storage

requirements

Biofuels offer Vopak

an upward business

with a limited

downside

Vopak could achieve

market leadership in

Africa, however,

currently it is not

considered a game

changer


Changing flows due to

economic reasons Changing flows due to

political reasons

Additional capacity by

competition

Structural changes in

certain product-market

combinations

The current backwardation

does not stimulate storage

demand

International sanctions

that impose restrictions on

Iranian activities

Uncertainty biofuel market

due to regulation

Capacity being built by

competitors in amongst

others ARA and Estonia

Changing business circumstances Challenging business situation for specific product-market combinations


Vopak’s strategy Disciplined execution of continuous alignment of terminal network portfolio with energy dynamics

Customer Leadership

Operational Excellence

Our Sustainability Foundation

Excellent People

Safety and Health

Our ability to create long-

term sustainable

relations with customers

and healthy occupancy

rates of terminals against

attractive rates

Our ability to find or

identify the right location

for our terminals

Growth Leadership

Environmental Care

Responsible Partner

Our ability to construct,

own, operate and maintain

our terminals to

deliver our services at

competitive costs in local

markets


Further align Vopak’s global terminal network Serving markets from a product perspective

Winning

clients and

ports

Product

strategy

Account

Management

Portfolio of

Terminals

Understand basic technology

Understand imbalances

Understand trade flow dynamics

1

Port attractiveness

Relevance for network

Pro-active approach

2

Customer segmentation

Access to the right people

Understand customer’s strategy

3


Further align Vopak’s global terminal network Greenfield, brownfield, acquisition and divestment

Greenfield

investment

Brownfield

investment Upgrading

investment Acquisition Divestment

Vopak project management


Safety Cost efficiency Service improvements

Frontline execution and competitive position Focus on safety, cost efficiency and service improvements

Ambition is to be as good

as our leading customers

Continuous focus on cost

management contributes

to healthy EBIT margin

Logistic efficiency and

service improvements for

our customers (e.g. jetty

capacity expansions)


Vopak’s capital disciplined growth strategy

to EBITDA ambition of EUR 1 billion

It has become unlikely that Vopak

will reach this ambition

already in 2016

Note: Excluding exceptional items; including net result from joint ventures and associates.

Royal Vopak

Westerlaan 10 Tel: +31 10 4002911

3016 CK Rotterdam Fax: +31 10 4139829

The Netherlands www.vopak.com

Date post:	06-Jun-2015
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Royal Vopak - Capital Markets Day 2013 - Eelco Hoekstra

Investor Relations